Received Royal Assent: 20 May 1903 Promulgated: 6 July 1903 Commenced: 6 July 1903 AN ACT to amend the Bankruptcy Code, 1892. 1 Short title

This Act may be cited as ‘The Bankruptcy Code Amendment Act, 1903’. The Bankruptcy Code, 1892 (hereinafter called ‘the principal Act’), the Bankruptcy Procedure Act, 1892, and this Act, may be cited together as ‘the Bankruptcy Acts, 1892 to 1903’; and this Act, so far as is consistent with the tenor thereof, shall be construed as one with the principal Act and the Bankruptcy Procedure Act, 1892. 2 [Repealed]1

3 Provisions as to proof of debts in sections 4 to 14

With respect to the proof of debts, the following provisions contained in sections numbered 4 to 14 (both inclusive) of this Act, shall take effect, and shall be deemed to form part of Part III of the principal Act. 4 Rights of secured creditors to prove for any balance due

If a secured creditor realizes his security he may prove for the balance due to him, after deducting the net amount realized. 5 Secured creditor surrendering his security may prove for whole debt

If a secured creditor surrenders his security to the trustee for the general benefit of the creditors, he may prove for his whole debt. Section 6 The Bankruptcy Code Amendment Act 1903

If a secured creditor does not either realize or surrender his security, he shall, before ranking for dividend, state in his proof the particulars of his security, the date when it was given, and the value at which he assesses it, and shall be entitled to receive a dividend only in respect of the balance due to him after deducting the value so assessed. 7 Trustee may redeem valued security

(a) Where a security is valued the trustee may at any time redeem it on payment to the creditor of the assessed value. Trustee if dissatisfied as to value of security may require sale of property comprised therein (b) If the trustee is dissatisfied with the value at which a security is assessed, he may require that the property comprised in any security so valued be offered for sale at such times and on such terms and conditions as may be agreed on between the creditor and the trustee, or as, in default of such agreement, the court may direct. If the sale be by public auction the creditor, or the trustee on behalf of the estate, may bid or purchase: Provision as to creditor’s option to redeem or sell security (c) Provided that the creditor may, at any time, by notice in writing, require the trustee to elect whether he will or will not exercise his power of redeeming the security or requiring it to be realized, and if the trustee does not, within six months after receiving the notice, signify in writing to the creditor his election to exercise the power, he shall not be entitled to exercise it; and any estate, right, title, or interest comprised in the security which is vested in the trustee, shall vest in the creditor, and the amount of his debt shall be reduced by the amount at which the security has been valued. 8 Creditor may amend valuation of security in case of mistake, etc

Where a creditor has so valued his security, he may at any time amend the valuation and proof on showing to the satisfaction of the trustee, or the court, that the valuation and proof were made bona fide on a mistaken estimate, or that the security has diminished or increased in value since its previous valuation; but every such amendment shall be made at the cost of the creditor, and upon such terms as the court shall order, unless the trustee shall allow the amendment without application to the court. 9 Effect of re-valuation in case of surplus or decrease

Where a valuation has been amended in accordance with the foregoing rule, the creditor shall forthwith repay any surplus dividend which he may have The Bankruptcy Code Amendment Act 1903 Section 10

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received in excess of that to which he would have been entitled on the amended valuation, or, as the case may be, shall be entitled to be paid out of any money for the time being available for dividend any dividend or share of dividend which he may have failed to receive by reason of the inaccuracy of the original valuation, before the money is made applicable to the payment of any future dividend, but he shall not be entitled to disturb the distribution of any dividend declared before the date of the amendment. 10 If security be realized after valuation or under section 7, the net

amount realized to be treated as amended valuation

If a creditor after having valued his security, subsequently realizes it, or, if it is realized under the provisions of section 7 of this Act, the net amount realized shall be substituted for the amount of any valuation previously made by the creditor, and shall be treated in all respects as an amended valuation made by the creditor. 11 Creditor not complying with above to be excluded from dividend

If a secured creditor does not comply with the foregoing provisions he shall be excluded from all share in any dividend. 12 No creditor to receive more than 20 s in the £

Subject to the provisions of section 7 of this Act, a creditor shall in no case receive more than twenty shillings in the pound and interest as provided by the principal Act. 13 Creditor lodging proof entitled to see proofs of others

Every creditor who has lodged a proof shall be entitled to see and examine the proofs of other creditors at all reasonable times. 14 Creditor proving debt to deduct trade discount

A creditor proving his debt shall deduct therefrom all trade discounts, but he shall not be compelled to deduct any discount, not exceeding five per centum on the net amount of his claim, which he may have agreed to allow for payment in cash. 14A Formal proof of certain debts not required

Formal proof of debts in respect of contributions payable under the Social Security Act 1975, or of contributions or premiums payable under Part III of the Social Security Act 1973 (as those Acts of Parliament have or, as the case may be, had effect in the Isle of Man by virtue of an order under section 1 of the Social Security Legislation (Application) Act 1974) to which priority is given by the Section 15 The Bankruptcy Code Amendment Act 1903

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Preferential Payments Act 1908, shall not be required except in cases where it may otherwise be provided by rules under the principal Act.2

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